Export Development Fund

 Export Development Fund

The Export Development Fund is expected to contribute to a sustained export drive and long-term development of Bangladesh Exports by assuring a continued availability of Foreign Exchange to meet the import requirements of particularly new exporters, exporters diversifying into higher value exports & new markets.

This fund, it may be recalled has been established jointly by the International Development Association (IDA) and the government of Bangladesh to finance import of raw materials for non-traditional export oriented industries on sight payment basis, Direct exporters would be able to borrow for their imported inputs based on confirmed & Irrevocable L/C opened by an overseas buyer and indirect exporters would be able to borrow for imported inputs based on confirmed irrevocable inland back to back L/Cs opened by direct exporters. The time of the pre-shipment loan from the EDF will be the export production cycle or 180 days whichever is shorter and will not exceed 180 days.

Opening of EDF (Export Development Fund) L/C’s:
1)  Passing of Contra Liability Voucher:
Dr. Customers liability for L/C (EDF)                                              Tk.
Cr.  Bankers Liability for L/C   (EDF)                                                Tk.

2)  Realisation of Charges
Dr. Party’s A/C                                                                                            Tk.
Cr. Income A/C – Commission on L/C (EDF)                                 Tk.
Cr. Income A/C –SWIFT/Telex/Courier Service etc.                 Tk.
Cr. Others, Stamp if any                                                                           Tk.

Note:   

1)    Taka Amount for contra voucher shall be determined by multiplying   the   L/C value at B.C Selling rate on the date .of L/c opening.
2)    Actual liability voucher may be passed by rounding up the amount in       thousand for balancing purpose.
3)    L/c opening statement to be sent to Bangladesh Bank through HO.

Lodgement of EDF (Export Development Fund)  L/C’S:

1)  Reversal of original contra entry

Dr. Bankers Liability for L/C      (EDF)                                                    Tk.
Cr. Customers Liability for L/C   (EDF)                                                  Tk.

2) Passing Bills liability voucher
Dr. Customers Liability for EDF Bills                                                       Tk.
Cr.  Bankers Liability for EDF Bills                                                            Tk.

3)    Payment of Bills
Dr.  Suspense A/C – EDF Loan Receivable from Bangladesh Bank Tk.
Cr.   ETCA – HO (At TT Clean Buying Rate)                                              Tk.

 

Settlement/Retirement of EDF L/C’S:

a)    EDF loan from Bangladesh Bank:

The branches shall apply for Export Development Fund (EDF )Loan to Bangladesh Bank as per existing procedure immediately on receipt of document but not later than 3 (three) days from the date of receipt of the import documents.

On receipt of Export Development Fund (EDF)  Loan from Bangladesh Bank, Head Office. International Division shall send a Credit Advice to the branch, which shall be responded for adjustment of suspense A/C EDF Loan receivable from Bangladesh Bank as mentioned above by passing the following vouchers.

Dr.  ETCA – HO- (Responding Credit Advice)                                             Tk.
Cr.  Suspense A/C – EDF Loan receivable from Bangladesh Bank      Tk.
(At TT Clean Buying Rate)
Cr.    Handling Charge                                                                                            Tk

b)    Refund of EDF Loan to Bangladesh Bank:

After receipt of Export proceeds, the EDF Loan amount along with interest shall be repaid to Bangladesh Bank under the existing procedure by passing the following vouchers:

Dr.     Sundry Deposit A/C – FC BPAR (At TT/Clean buying rate)       Tk.
Cr.     ETCA – HO                                                                                                       Tk.

Liability reversed from Bills EDF

Dr.       Bankers Liability for EDF Bills                            Tk.
Cr.       Customers Liability for EDF Bills                        Tk.

Note: 

i) In Addition to party wise individual EDF Loan Ledger, the Foreign Exchange Department of each    branch shall maintain EDF Loan Control Ledger and all the transaction of EDF Loan shall be routed through this ledger.

ii) The rate of the Interest (Additional amount) will be (LIBOR + 1) %, where LIBOR rate shall be paid to Bangladesh Bank & additional 01 (One) percent shall be taken by the branch from the party.

Summary on Export from Bangladesh

Summary on Export from Bangladesh Introduction 1.1 The word export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. …

When and why a country prefer exports?

When and why a country prefer exports?  A country exports prefer when the goods, services and skills are  surplus than the demands of that  country.we can say, a country has …

How to Export

How to Export Export Section   4.10: Abridgment on Export Business Export is one of the most important parts, which can develop economic and social structure through transaction of goods …

EXP FORM

EXP FORM EXP Forms issued in quadruplicate & numbered serially. Signed by the exporter & certified by the branch. EXP Forms are properly entered in register with full particulars before …

Export at a glance

Export at a glance Export Section. 4 4.10: Abridgment on Export Business. 4 Meaning of Export 4 Definition of Exporter. 4 Procedure for Obtaining Export Registration Certificate (ERC): 4 Different …